Foreign interest in Turkish real estate market - latest news

Foreign companies have turned their attention to the Turkish real estate market. With the elections over, the real estate market in Turkey is starting to revive as companies are releasing new projects that were previously on hold. Foreign firms are also looking at opportunities in the local housing market after the election-related uncertainties are lifted. It has been otherwise until now, foreign companies have mainly been buying real estate, but now they are also looking at developing projects in Turkey.

After the elections, foreign investors' interest in the Turkish market has increased significantly, as Ege Yapı Yönetim's chairman, Inanc Kabaday, notes, "Foreign developers see thehuge opportunities in the Turkish market. We are in talks with companies from the Gulf and Central Asian countries to develop projects," he said. "We expect more foreign companies in the real estate market." Kabadai suggested that the financing provided to the sector should be diversified.

The Turkish Statistical Institute (TUIK) reported this week that the annual increase in the index of theconstruction value decreased from 60.7 percent in March to 53 percent in April. The monthly increase was 0.9 percent. Labor costs in the construction sector were 0.18 percent month-over-month and 103 percent year-over-year. Monthly and year-to-year increases in the materials cost index were 1.4 percent and 40 percent, respectively. In the first four months of 2023, home sales fell 18.6 percent from a year ago to 369,000, with mortgage-financed sales down nearly 20 percent to about 81,000. In April alone, 86,000 homes were sold, marking a 36 percent decline from the same month last year.